Bragg Gaming shares spike 14% on the back of insider share purchase
Senior management and board members snap up “undervalued shares” as CEO says lessons have been learned following company’s strategic review
Bragg Gaming Group’s share price jumped 14% by the close of trading yesterday, 10 December, after the business announced a “significant” insider share purchase.
The update sent Bragg’s shares up to C$5.28 (£2.92) on the Toronto Stock Exchange, having closed trading at C$4.63 on 9 December.
The company’s shares slumped by more than 30% on 14 November after it concluded a strategic review which put any plans to sell the supplier on hold.
Bragg’s shares are down 24.1% in the year to date, while its market cap is C$132.2m at the time of writing.
While Bragg did not confirm how many shares were purchased by senior management and board members, the firm did note the backing demonstrated underlying confidence.
On the strategic review, management said they identified “key focus areas” to help drive the business forward.
“Strategic growth and liquidity initiatives remain key priorities following the board’s strategic alternatives process conclusion,” the company said.
Bragg said it would issue formal 2025 guidance early next year, but claimed that “double-digit revenue growth, expanding profit margins and increased operational leverage” would form the basis for a “strong” year.
Matevž Mazij, Bragg CEO, said the share purchase showed management’s confidence in the “company’s near-term potential”.
He said: “We remain committed to creating shareholder value and liquidity opportunities over the next year through strategic transactions, or other value-enhancing initiatives.
“While the strategic review process has concluded, our dedication to pursuing these objectives heading into 2025 remains unchanged.”
On what lessons were learned from the strategic review process, Mazij said Bragg garnered “invaluable insights”.
The CEO continued: “Furthermore, the strategic review process provided invaluable insights into the key factors potential acquirers prioritise when crafting bids that accurately reflect our intrinsic value.
“We’ve identified key focus areas, such as stronger cash generation, increased revenue diversification, accelerated proprietary content growth and enhanced margins.”
He added: “While the formal review process has concluded, it has sharpened our focus on the metrics that matter. These are tangible, actionable targets that have been at the heart of our strategic initiatives, and we believe are achievable under our 2025 plan.”